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Journalism of Courage
ICICI Bank’s sponsored ADS has been priced at $21.11 per ADS and the issue has raised $405 million. Each ICICI Bank ADS represents its two underlying equity shares. The issue opened on March 14 and closed on March 18.
The ADS pricing represents a premium of 18 per cent to the closing domestic share price as on March 11, the last date for tendering shares in the offering.
The offer was subscribed approximately four times. The ADS offering of 19.2 million is equivalent to 38.4 million equity shares, which were sold by the joint global coordinators and joint book runners.
As a greenshoe option, the bank can raise another over $60 million by purchasing a further 2.9 million ADS. The offer constitutes 5.2 per cent of the bank’s paid-up capital.
Merrill Lynch International, Morgan Stanley and UBS Investment Bank were the joint global coordinators and joint book-runners for the offering, ICICI Bank said.
ICICI Bank had offered to convert up to 6 per cent or some 44.2 million shares into ADRs, which bankers said, was aimed at improving liquidity in the US. A total of 62.1 million equity shares were tendered by the shareholders.
The tender acceptance is based on the proportion formula prescribed by RBI, it added. The second ADS will hike the bank’s ADR float to 27 per cent.
